If the perpetual inventory master files show lower quantities of inventory than the physical count, an explanation of the difference might be unrecorded
A) sales.
B) sales discounts.
C) purchases.
D) purchase discounts.

Question

Quizplus · Accepted Answer

Unrecorded purchases would result in the perpetual inventory master files showing lower quantities of inventory than the physical count because these purchases have not been entered into the system, thus not updating the inventory records to reflect the actual stock levels.

If the Perpetual Inventory Master Files Show Lower Quantities of Inventory